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Last Published: 4/14/2009 7:34:05 AM
KANSAS CITY COUNCIL RECORD
 
Upon Roll Call the following members were present:
Present:5 - DEB HERMANN, JAN MARCASON, SHARON SANDERS BROOKS, BETH GOTTSTEIN, RUSS JOHNSON
 

090225
Establishing Fund No. 8071, the 2009A Water Project and Refunding Fund; estimating revenues in the amount of $213,186,868.00 in the Series 2009A Water Project and Refunding Fund; appropriating the same; designating requisitioning authorities; and authorizing the Director of Finance to close project accounts upon completion.


FINANCE AND AUDIT COMMITTEE recommends "ADVANCE AND DO PASS, DEBATE"
Tamela Handley-Mosby, Treasury Department, testified that this ordinance would allow the Water Services Department to start funding new water bond projects and get them out on the streets as soon as possible. There would also be refunding of bonds for prior years included in the ordinance package.
Ayes: 4 - Hermann, Marcason, Sanders Brooks, Johnson
Nays: 0

090234
(Sub.)
Amending Chapter 2, Code of Ordinances, by enacting a new section regarding transfer of funds.


FINANCE AND AUDIT COMMITTEE recommends "HOLD ON AGENDA (4/15/2009)"
Councilman Ed Ford stated that he had introduced this ordinance to try and eliminate the misapplication of funds budgeted to the various departments within the city government. He stated a couple of instances where money had been spent for items outside the scope of the departments in question. These items did not come before the council for approval. This ordinance would require such appropriations be approved by the council before they can be transferred or applied elsewhere. This item was held one week in order to clarify several items in the ordinance.

090259
Approving and authorizing settlement of a claim for a workers' compensation benefit filed by Raymond Smith for injuries resulting from an accident on May 26, 2006, while employed by the City.


FINANCE AND AUDIT COMMITTEE recommends "ADVANCE AND DO PASS, CONSENT"
This item was discussed in closed session then voted on.
Ayes: 4 - Hermann, Marcason, Sanders Brooks, Gottstein
Nays: 0

090260
Accepting the recommendations of the Tax Increment Financing Commission of Kansas City as to the Eighth Amendment to the KCI Corridor Tax Increment Financing Plan; approving the Eighth Amendment to the KCI Corridor Tax Increment Financing Plan. 


FINANCE AND AUDIT COMMITTEE recommends "DO PASS"
Kellee Wood, EDC, testified before the committee on this ordinance. This ordinance starts the work on infrastructure improvements within the TIF plan boundary only. It does not start the project.
Ayes: 5 - Hermann, Marcason, Sanders Brooks, Gottstein, Johnson
Nays: 0

090261
(Sub.)
Accepting the recommendations of the Tax Increment Financing Commission as to the Fourth Amendment to the Parvin Road Corridor Tax Increment Financing Plan; and approving the Fourth Amendment to the Parvin Road Corridor Tax Increment Financing Plan.


FINANCE AND AUDIT COMMITTEE recommends "DO PASS AS A COMMITTEE SUBSTITUTE"
Kellee Wood, EDC, testified before the committee on this ordinance. This ordinance starts the work on infrastructure improvements only within the TIF plan boundary. It does not start the project.
Ayes: 5 - Hermann, Marcason, Sanders Brooks, Gottstein, Johnson
Nays: 0

090262
(Sub.)
Accepting the recommendations of the Tax Increment Financing Commission as to the Ninth Amendment to the Shoal Creek Parkway Tax Increment Financing Plan; and approving the Ninth Amendment to the Shoal Creek Parkway Tax Increment Financing Plan.


FINANCE AND AUDIT COMMITTEE recommends "DO PASS AS A COMMITTEE SUBSTITUTE"
Kellee Wood, EDC, testified before the committee on this ordinance. This is another ordinance that starts the work on infrastructure improvements within the TIF boundary.
Ayes: 5 - Hermann, Marcason, Sanders Brooks, Gottstein, Johnson
Nays: 0

090264
Estimating revenue in the amount of $35,200.00 to the General Fund for reimbursement of audit fees and authorizing the Director of Finance to enter into a contract with BKD,LLP, to make the annual independent audit of the City’s books and records for the fiscal year ending April 30, 2009, and to perform other audit services, as requested; and authorizing the Director of Finance to pay up to $525,000.00 in consideration for said audit and audit related services.


FINANCE AND AUDIT COMMITTEE recommends "ADVANCE AND DO PASS, DEBATE"
Jeff Yates, CFO, explained that the Charter required a change in outside auditors when there comes a repeat in staff being used. The previous company had been auditing the City's books for over twenty years. The rotation was at a repeat stage. So the department went with a different auditoring firm. All issues of conflict have been addressed to the city's satisfaction. Councilman Russ Johnson abstained because of a conflict with the company. He stated that he worked for the company.
Ayes: 4 - Hermann, Marcason, Sanders Brooks, Gottstein
Nays: 0

090265
Appropriating $687,295.00 from the Unappropriated Fund Balance of various funds to increase the appropriation for Bartle Hall debt service variable rate bond, Recreation Vehicle Lease and Arbitrage Rebate Payments; and recognizing an emergency.


FINANCE AND AUDIT COMMITTEE recommends "ADVANCE AND DO PASS, DEBATE"
Randy Landes, City Treasurer, explained that the ordinance approved payment on variable rate bonds. The original bond holder lost its credit rating and the replacement bond holder also lost their rating. The city was forced to secure a bond holder which happened to be a bank. Therefore, the city is paying bank rates instead of bond rates. That is the reason for the increase.
Ayes: 4 - Hermann, Marcason, Sanders Brooks, Gottstein
Nays: 0

090058
(Sub.)
RESOLUTION - Directing the City Manager to maintain the hiring freeze and other existing cost containment measures, limit certain discretionary expenditures, present recommendations to remediate the potential shortfall following the third quarter analysis and immediately begin the reduction in force proposed in the submitted budget.


FINANCE AND AUDIT COMMITTEE recommends "HOLD OFF AGENDA"
 
 There will be a presentation on Kemper Arena. Oscar McGaskey, Director of Convention Facilities, reported that the Kemper Arena continues to operate at a loss. There were three suggestions that staff presented to the committee for consideration. 1. Have someone other than AEG manage the venue. Send out requests for RFPs for an arena manager. 2. Sell the facility. 3. Do nothing and continue to have the City subsidize the arena operations. There were several times to take into consideration with Kemper Arena changing management or ownership. The American Royal has an additional 37 year contact with Kemper Arena to supply space for at least a 30 day period each year. Councilman Johnson asked if the outstanding bond debt would prohibit the city from getting rid of the arena, possibly through an auction or selling it to the American Royal. Mr. McGaskey said that staff was working on finding out the answer to that question. Currently he wasn't sure. He also stated that the staff's recommendation was to put out a request for an outside management firm to run Kemper, with stipulations. Councilwoman Hermann allowed public testimony which was given by the following people: Jim McNair and Brian Beaver, American Royal wanted to continue the relationship that their organization has had with the city for over 100 years. Mr. Beaver stated that the Royal was looking for ways to bring more events to the Kemper. He asked that the RFP include the American Royal or their concerns when stating the scope of services during the RFP and selection processes. Patrick Rye, Rye Producions, stated that his organization presented dog shows each year at the American Royal building. He would like to see that continue. He suggested adding a fee to tickets sold at the Sprint Center and discontinuing the user fee now being charged to use the American Royal and Kemper Arena facilities. Bishop LeRoy Kuzart, stated that he could come up with numerous projects that could be held at Kemper Arena, if given the chance. The council committee gave the okay to start the RFP process. There will be a presentation of the monthly financial report for the periods ending January 31, 2009 and February 28, 2009. Mary Temple, City Controller, presented the monthly reports for January and February, 2009. A copy of the report is on file in the Office of the City Clerk. There was an increase in expenditures but revenue was holding steady. Jeff Yates, CFO, stated that the revenue estimates had been downgraded to reflect what is happening with the economy. Budget Implementation discussion. Councilwoman Marcason had a question about the International Office. City Manager Cauthen stated that the operations and functions and any outstanding projects of that office would be transferred to his department and handled by his staff in future. City Manager Cauthen also talked about the funding of water for the city fountains. The costs would be incurred by the Water Department. Technically the money would be coming from monies collected from citizens for water usage. Mark Thoma-Perry, Budget Office, talked about the costs savings with the reduction of the workforce that took place last week. ( A copy of the General Fund Reductions was supplied to the committee. This was a breakdown of where the reductions occurred.) There was also a section showing restored positions and a section on pending restoration. Councilwoman Hermann stated that only the positions mentioned under Resolution 090252 should be looked at. The resolution called for alternative sources and those sources should be outside of city control. She also asked for a report showing the additional money that the budget office reportedly cut from various departments and programs in order to balance the budget. She would like to have that at the next meeting. There may be general discussion(s) on current Finance and Audit Committee issues. Pursuant to the following subsections of Section 610.021 of the Revised Statutes of Missouri, there may be a closed session to discuss: (1) legal matters, litigation, or privileged communications with attorneys, pursuant to subsection 1; (2) real estate, pursuant to subsection 2; (3) personnel, pursuant to subsection 3 and 13; and/or (4) sealed bids or proposals, pursuant to subsection 12.